Crossamerica Partners (CAPL) investor relations material

Executive summary

• Net income for Q3 2025 increased to $13.6 million from $10.7 million year-over-year, driven by asset sale gains and lower interest expense, despite a 6% decline in adjusted EBITDA.

• Asset sales of 29 sites generated $21.9 million in proceeds and $7.4 million in net gains, supporting debt reduction and portfolio optimization.

• Distributable cash flow rose to $27.8 million, supporting a stable quarterly distribution of $0.5250 per unit and a coverage ratio of 1.39x.

• Operating revenues for Q3 2025 decreased 10% year-over-year to $971.8 million, while operating income rose 4% to $28.1 million, aided by real estate rationalization and lower expenses.

• Adjusted EBITDA was $41.3 million, down 6% year-over-year.

Financial highlights

• Retail segment gross profit decreased 4% to $80 million; wholesale segment gross profit declined 10% to $24.8 million year-over-year.

• Merchandise gross profit increased 5% to $32 million, with same-store sales up 3–4% and gross margin percentage up 100 bps to 28.9%.

• Interest expense declined to $11.8 million from $14.1 million year-over-year, reflecting lower rates and debt balances.

• Operating expenses declined 5% to $57.5 million, reflecting site count reduction and lower legal and equity compensation costs.

• Distribution per common unit was $0.5250 for Q3 2025, unchanged year-over-year.

Outlook and guidance

• Management expects continued real estate rationalization, site conversions, and asset divestitures to influence results, with further debt reduction anticipated.

• Same-store merchandise sales and margin percentage are expected to remain strong, while fuel volumes may continue to face market headwinds.

• Asset sale pipeline remains robust for the remainder of 2025 and into 2026, though next year’s sales volume is expected to be lower but still meaningful.

• Focus remains on maintaining a strong balance sheet and generating value for unitholders.